Greg Abbott Sets Budget Priorities Focused on Affordability and Fiscal Discipline for 2028-29

Governor Greg Abbott (R-TX) is setting the tone for the state's next budget cycle, joining Lieutenant Governor Dan Patrick (R-TX) and House Speaker Dustin Burrows (R-TX) to release joint guidance directing state agencies on how to prepare their spending requests for the 2028-29 budget period.

The guidance centers on four main priorities: tackling affordability for Texas families and homeowners, requiring state agencies to trim their base budget requests by 3%, protecting education funding from cuts, and continuing to support teachers while advancing property tax reform.

Abbott framed the guidance as a continuation of Texas' approach to responsible governance.

"This guidance protects our historic investments in public education and teachers, delivers even more property tax relief, and makes the cost of living more manageable for Texas families through strict standards of efficiency and accountability from every state agency," he said.

What the Plan Entails

The three percent reduction requirement for state agencies stands out as a significant element of the plan.

Rather than allowing agencies to request flat or increased budgets, they will be asked to find ways to do more with less, a move the leaders say reflects the kind of fiscal discipline that has kept Texas financially competitive.

Notably, that belt-tightening does not apply to education. The guidance explicitly shields the Foundation School Program and the Texas Education Savings Account Program from any base budget reductions, signaling that public school funding and teacher support remain a top priority heading into the next legislative session.

The announcement builds on what the leaders describe as a productive previous legislative session.

During the 89th Legislature, Texas delivered record funding for public education, teacher pay raises, major investments in water infrastructure and healthcare, and property tax relief totaling $51 billion for homeowners statewide.

Lieutenant Governor Patrick said the goal is to keep Texas on a "fiscally conservative path" that ensures the state lives within its means.

Speaker Burrows echoed that, arguing the spending reductions will provide a foundation for a budget that keeps Texas affordable while supporting continued growth.

With the cost of living rising across the country, Abbott and his fellow leaders say Texas is positioning itself as a model for how states can protect families without sacrificing fiscal discipline.